China Jiuhao Health Town to commence operation in Sanya in 2016

Updated: 2013-06-05 09:37:44

China Jiuhao Health Industry Corporation Limited (formerly known as “Media China Corporation Limited”; “Jiuhao Health” or the “Company”, together with its subsidiaries collectively known as the “Group”) (Stock Code: 00419.HK) is pleased to announce that the Group has entered into a conditional agreement with an independent third party to acquire the operating rights of a land located in Sanya City, Hainan Province with a total site area of about 339,000 square meters for a total consideration of HK$25.20 million. It also plans to acquire the operating rights of an adjoining land with a site area of approximately 1,667,000 square meters. Both land plots will be combined and developed into a quality health and regimen-themed community project known as China Jiuhao (Sanya) Health Town. This project is expected to commence operation in 2016.

Mr. Yuen Hoi Po, Chairman of Jiuhao Health, commented, “With increasing aged population and continuous growth in per capita income in China, there is a strong demand for high quality health maintenance and retirement services. In order to capture these tremendous opportunities, the Group shifted the focus of its core business to health industry by developing quality health maintenance and retirement projects in different cities across the country under the brand name of ‘China Jiuhao Health Town’. We strive to develop ‘Beijing Si He Yuan and Hotel’ as the first flagship project of ‘China Jiuhao Health Town’ and will use it as a platform to roll out more similar projects in Hainan Province and other cities throughout the nation, thereby delivering greater returns to our shareholders."

China Jiuhao (Sanya) Health Town boasts a prime location with gorgeous surrounding. It sits on Sanya City, which is well known as Oriental Hawaii, and is only 11 kilometers away from Sanya Phoenix International Airport. The community embraces various supreme health and regimen-themed facilities, including a standard 18-hole golf course, regimen and elderly-care apartments, villas, resort and hotel with total GFA of approximately 1 million square meters. Featuring Chinese elements, it is envisaged to be developed as a health and regimen-themed community offering a wide range of facilities to customers, such as accommodations, a hotel, SPA, a health center, a recreational center.

Since its transformation towards health business, the Group has achieved significant improvement in operating results. Underpinned by considerable income from the No.9 Club”, the Group achieved hefty revenue of approximately HK$145 million in 2012, up 120% year-on-year. The “Bayhood No.9 Club” contributed about 88% to the Group’s total revenue and overtook the media business to become its largest revenue contributor. Profit from the project amounted to approximately HK$36.44 million, a whopping 207% year-on-year increase.

The Group will extend its value chain to health business through the development of China Jiuhao (Beijing) Health Town, with the “Bayhood No.9 Club” playing a crucial role in this project. “Beijing Si He Yuan and Hotel”, which is adjacent to the “Bayhood No.9 Club”, occupies a total site area of approximately of 580 mu and is estimated to have a total GFA of approximately 80,400 square meters. Comprising more than 30 low-density villas and Si He Yuan, and a hotel with 40 rooms plus a clubhouse, it is expected to commence construction in August 2013 and the first phrase will be completed in the second half of 2014. Meanwhile, China Jiuhao (Beijing) Health Town will be equipped with a health management center. By cooperating with the top-tier hospitals and medical research institutes in Beijing, it will offer one-stop services to customers such as body check-up, medical expert consultation, health consultant services, as well as “Green Medical Channel”. It is expected to commence operation in 2014. The management believes that the Group’s health maintenance and retirement businesses will sustain rapid growth in the future and generate stable income and strong cash flow to the Group.